People have a very simplified idea of real estate investing. They think that it’s just a case of buying a house and then finding tenants and waiting for the money to come rolling in, but there’s a lot more to it than that. If you are going to be a successful real estate investor, it’s important that you focus on a specific area of real estate. There are a lot of different real estate niches and you need to think about exactly what you want out of your investment and how hands-on you want to be. These are some of the different real estate niches to consider.
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Family Homes
Family homes are a common niche for real estate investors because there are plenty of families out there looking for places to live. As property prices increase and the number of people that can afford to buy decreases, landlords find it a lot easier to rent their properties out. If you want to invest in a family home, it’s important that you find the right location because proximity to amenities like shops and schools is always a priority for families. A large outdoor space is always a bonus for family properties as well.
Single Professionals
Finding properties for young, single professionals is an equally lucrative real estate niche. Usually, these people want an apartment close to the city center with good access to restaurants and bars. Although these properties are more expensive to buy, they are far more competitive on the rental market, which means that you can charge more in rent and make a bigger profit. Ideally, you should look for new build apartments that are ready to move into right away, and focus on location over property features because corporate tenants don’t spend as much time at home.
High End Properties
High end properties are a difficult niche to get into because they require a lot of initial investment. However, if you can get your foot in the door, you can make a lot of money. If you can afford to buy splendid mansions rather than modest family homes, you can market to the wealthiest people in the country. In most cases, these large properties are in desirable areas and the value is likely to increase, so they are great for selling on in a few years to make a profit.
Holiday Lets
Holiday lets are another great option if you can afford a property in a popular tourist area. If you set yourself up on a site like AirBnB and you can get some good reviews, you should be able to book people in for the majority of the year. You can charge more for holiday lets, but they are less reliable because you won’t have permanent tenants, so they’re not the best option if you rely on your income from the property investment.
Finding a niche is so important because you need to play to your strengths. If you just buy a property without considering who your market is or the specific challenges associated with kind of real estate investment, you are likely to struggle.